RETAILING

Special characteristics affecting retailers:

Small average sale impulse purchases
Retailers strategy

popularity of stores: imp. ec. people get use! to place
retailing: purpose of purchase important en! user" personal consumption
#holesale: uy $ sell to another user
%R &er
'a(imi)ing efficiency for supplier an! manufacturer. *y retailing the retailers nee!s an! #ants match #ith cer
'anufacturer ma+es use of : economies of scale efficiency
Speciali)ation
&,ers consume small -uantities ut #ant varietylarge variety of pro!ucts utility ma(imi)ation for the c,er.
&onvenience place $ time time $ place utility " in or!er to reali)e this manufacturers estalish manuf. .utlets
in every corners.
retailer ta+e this function sorting process" collects assortments of pro!ucts from !iff. manufacturers an!
ma+es assortments " comines them meaningful to its target mar+et.
E(. migroscollects assortments of pro!ucts an! !epen!ing on the c,ers they ma+e meaningful assortments.
!eman!e! y the en! user.
Retail outlets: #e e(pect the retailer to attract cers to these outlets. /ifficult to reach all cers.
mail or!er sales can e the solutions. place utility
electronic sales. time utility
saving time not e(act
preferre! y the people having time scarce. Time utility.
&aptive people !isale!
ol! people in terms of time saving these sales can se goo! i!eas.
little chil!ren
#or+ing #omen the numer of #or+ing people
time saving" !epen!ing on pro!ucts stan!ar!i)ation laele! pro!ucts
impulse purchases are eliminate! y mail or!er" ut in retailing the impulse purchases are imp. the amount
of purchases in a!!ition to mailing list
sorting process: ul+ rea+ing function
from the cer points of vie#: most cer #ant one stop.
Shopping #hich are supermar+ets $ shopping centers aime! to satisfy this nee! of cer.
Specialty storeshyper mar+ets
utchers
vegetale stores not satisfying this nee!
a+ery
pharmacy
locate! near each other utcher $ a+ery $ !rug store
they together form a shopping center" tra!itional neighorhoo!.
cers #ant to have comparative shopping
isolate! store: ig specialty stores" furniture stores: lots of alternatives
restaurants from strings" ut #ho #ants to !ifferentiate itself" location #ill e isolate!.
Retailer assortment strategies:
%i!e Narro# category narro#
/epartment store specialty store
/eep supermar+et off 0 price chain
Supermar+et la#n care services
1ariety store fast foo! restaurant
Shallo# retail catalog ven!ing machine
Sho#room o( store
2 of varieties flea mar+ets un!er a certain pro!uct group.
Toy 3R4 us: category +iller: in that category it has everything #i!e $ !eep assortments
'erchan!ising:
Refers to all activities #here a goo! is ac-uire! an! ma!e availale to cers at place" time" price" -uantity
merch. 5hilosophy: some people responsile for sale $ purchase
sales philosophy: sales $ purchases functions are consi!ere! separately
elements of retail strategies:
situation analyses: org. mission: reason for e(istence
nee! appr: i!entify nee! pro!uct appr.: satisfy #ith pro!uct
o#nership $ man alternatives
goo!s 6 service category
o7ectives: sales" profit" satisfaction of pulic" image
i!entification of consumers mass mar+eting
mar+et segmentation
multiple segmentation
lease! store: !ivan in migros: assortment
speciali)ation
attract a!!itional cers
impulse purchases #ill e imp.
A!v. of !ivan: impulse purchases
cer o!y #ill increase
flo#er shop in migros !o not have any loyal cers
ne#spaper stan!
such stores are parasite stores for retailers. They !o not attract cers. They !o not have their o#n loyal cers.
cer satisfaction ec. of one stop shopping.
overall strategy: controllale variales
location !ecision" pro!uct mi( 8 merc. /ecision 9 " pricing" -uality !ec.
uncontrollale variales
regulations" economic 6 political con!itions" competitors" cers
specific activities: !aily $ short term operations
responses to environment
control
seasonality: uncontrollale: at least at the SR #e cannot control it. ice:cream
controllale variales:
;. store locations $ operations
<. pro!uct 6 service offering
=. store 6 #age promotion
>. pricing
!ept of assortment: !iff. items" si)e" color
#i!th of assortment: !iff. pro!ucts.
5sychological pricing: attract cersimpulse purchases
'ar+eting concept: nee!s $ #ants of the cers is imp.
5rofit is imp.
Applying retailing concept:
&er orientation
&oor!inate! effort: !iff. plans
All these activities integrate! to efficiency
Goal orientation

retailer concept retailer strategy

retailer strategy:
location 6 !istriution
pricing
pro!uct 8 merchan!ising 9
promotion 0 image
total retail e(perience concept: especially in store type retailing " total e(perience is very imp. relate! to
promotion 6 image
ho# !o cers position the ran!?
- past e(periences of cers
- total e(perience: ho# the functions?
Si)e of" color of uil!ing?
Sales people" pac+aging imp. positioning !epen!s on the total e(perience.
Empo#erment: give po#er to employees to ma+e !ecisions. To reach the o7ectives " employees are empo#ere!.
Relationship mar+eting: long 0 term
8 #ith all chain 'utually eneficial
memer9 After sales relations : !iscounts
: congratulations car!s
&onsumer $ Suppliers
@igh en! strategy: high -uality" high price pro!uct" elaorate services" interior $ e(terior of the store is
attractive" locate! to high income areas. Retailer personal is s+ille!.
Lo# en! strategy:
%heel of retailing mo!el:
A ne# institution 8 supermar+ets entering first 9 can enter a mar+et only if it has a lo# en! strategy. 8 lo# prices"
limite! facilities" price sensitive cers.9
Retail institutions: : o#nership: franchising
: strategy: hypermar+et" specialty stores" convenience stores.
'e!ium strategy:: mo!erate prices
: improve! facilities
: roa!er ase of value 0 service conscious consumers.
@igh en! strategy: : high prices
: e(cellent facilities
: upscale consumers
Scramle! merchan!ising:
5harmacentical shops: tra!itionally they sell !rugs" to!aycosmetics" toys" slippers" sea:si!e items
L.&ATI.N /E&ISI.N:
'ost strategic ec. it has LR effects" fi(e! investment an! shops " influences our !ecisions 8 pricing"
merchan!ising" image" target mar+et 9
Location !ifference:
NiAantaAB hisarustu
&ers higher income univ. Stu!ents #ith limite! income
8 young people 9 fashion concept !ifferent
pricing #ill e accor!ingly
changing location #ill e !iff. after years therefore it is a fi(e! I.
appropriate location: can help the retailer to e successful " even other strategies are me!iocre.
%rong location
Tra!ing area: from #hich the retailer attracts its customers 8 gravity approach 9
- primary: most of the cers are attracte!
- secon!ary
- fringe
communication purposes are imp. #hen you +no# the primary area
chain store: no over lops in the primary area #ante!
- !iscourage competitors
- cer satisfaction a!v.
ma7or factors to consi!er in evaluating a retail area:
- population si)e $ characteristics : si)e total si)e $ !ensity easier to attract
8 !emographic variales imp 9
- availaility of laor
- closeness to source of supply : !elivery cost
- promotion potential
- economic ase: #hen $ ho# people in that region earn their incomes ? variety !ecreases the ris+ element
- competitive situation: level of saturation : cer !eman! is satisfie!!iff. to attract
- availaility of store locations: !iff. to fin! locations" there can e no more availale locations.
- Regulations
Site !ecisions:
pe!estrian traffic: 2 of people" types of people
vehicular traffic: 2 of vehicles" types of vehicles " traffic congestion
!irection of traffic imp. home oun!
par+ing facilities
transportation
store consumption 0 affinity" retail alance 8 other stores 9
specific site: visiility" si)e an! shape of it
Affinity: if stores in a given area complement each other" then the presence of each store #ill e eneficial for
oth of the stores synergy $ complement each other
Retail alance: mi(ture of the stores
2 of stores for each pro!uct 6 service is e-ual to locations target potential
5arasite stores: !o not have a tra!ing area of their o#n !estination store has comparative a!v. over others.
5erceive! as most travelling !istanceimpulse purchase
&ers loyalty is very high.
%hy int. retailing? 0cash flo#
Europe 0 early !ev. stage
Internationali)ation of retailing : ;CDEs FG>
;CHEs ;D<
;CCEs
IR inst. ta+e their most of turnovers from their !omestic usinesses.
5ush factors seem to e more effectiveprolems" constraints face! in the !omestic mar+et are imp ec of the
early stage.
Iig. ;"= stages of int. !ev.
An int. institutions enter the mar+et #ith reluctance
high perceive! ris+ $ cost
caution: learning curve
amition: carrefour
all inst. !o not follo# the solve mo!el
#ith perceive! ris+ there is a concept psychic !istance
perceive! ris+

!istance actual 8 +m 9 A J * one location seems to e farther a#ay
psychic !istance 8 perception 9
- culture: country similar in culture re!uce the !istance
- perceive! ris+ element
- !iff: financial !iff." fin!ing the location
Rer si!e:
- physic !istance is one factor influencing the investors !ecision.
Rers try to get e(perience in !omestic mar+et first " then they !eci!e to go out;
st
they go to lo# ris+ overseas
mar+et. Some of the e(periences can e transferre! to the overseas mar+et.
'avi in ne# Kor+amitious international retailing.
Iig. ;.> international !ev. 5ositions.
gloal: target mar+et is homogeneous
: some retailing strategy can e applie! #ithout any change.
: least alternative to cers nee!s $ #ants.
E(. 'c /onal!s : as in pro!uct assortment
: ayran " mc e(tra" mc royal
although they are gloal " they ta+e into consi!eration the local taste other r mi( elements are constant.
multinational each inst. Act as in!epen!ent entities
cers nee!s an! #ants are imp.
transnationalin micro mar+eting
cost effectiveness is most imp. In gloal enefit from e of s efficiency
in transnational #e !o not sacrifice from cers nee!s $ #ants an! also from the cost effectiveness an! efficiency.
Lenophoia: afrai! of !istance" !ont #ant to go far a#ay
Iig. ;.G options for mar+eting $ entry:
licensing: no e-uity o#ne! y the parent co. S5AR supermar+ets. 'other co is /utcu an! they have licensing
agreement #ith Se)ginler GB!a. 5ay loyalty feein return they get international name an! same +no# 0 ho#.
&oncessions: mother co. more control over Rer
operation of shops #ithin shops timerlan!
agreement more than licensing enter the mar+et an! get ;
st
time e(perience in the
mar+et 5ierre &ar!in in 5rintemps
Iranchising: Iranchisee $ Iranchiser 8 parent co 9
!ifference #ith licensing more control " very close control ec. they are gloal firms
8 *enetton 9 5arent co !eci!e everything assortment !etermine! y the hea! -uarter ut franchisee can chose the
assortments.
Although they are gloal they have a margin to cer nee!s $ #ants.
*eymen Iranchisee
'ar+s $ Spencer initial franchisee #as Tur+ 5etrol" !ue to some financial reasons they ought it to II*A
hol!ing. 8 Iinansan+ 9
Moint A!venture chose a partner +no#ing the mar+et an! enter the mar+et.
Terminate the agreement ecause it shoul! enefit oth parties.
;CGEs'IGR.SS#iss co 8 fe!eral of S#iss corporation 9
$ Istanul 'unicipality
;CHGs'igros sol! its shares to NoO @ol!ing.
;CC<&ontinent 8 Irench 9 $ /ogus @ol!ing 8 Tansas 9
;CCDterminate!
Ac-uisition uy the store 8 'ar+s $ Spencer uying e.g. Naramursel 9
Self 0 Start 0 Entry internal e(pansion
;CDC'etro 8 ;CCH 0 7oint venture #ith NoO @ol!ing 9 still !irect entry
&arrefour ;CC< !irect investment
;CCF 7oint venture #ith SaancB
&arrefourSa
&o can have more than one entry ma!e:
Licensing 0 Mapan
Iranchise 0 Tur+ey 'ar+s $ Spencer
Moint vent : &ana!a
Alliances 6 &ollaorate: /iff. retail institutions came together $ !eci!e to support each other.
&an ta+e place in !iff. areas: P political loies
P purchasing
P logistics
e(. *eymen A!vantage &ar!Alliance #ith &ity *an+
'osco#: Noc entere! #ith shopping center $ Ro# store
'igros =EQ
Ro# <EQ
Noc $ En+a GEQ
Russia: Ro# gross store 8 #hole sale $ !istriution 9
/istriution of pro!ucts of Noc $ Tur+ @en+el
Roe torg 8 ;CC> 9 in Tur+i countries 8 #holesale $ !is 9
active sales " more active in sharing channel
functions: stan!ar!" financial supp.
&ash $ carry: no support from #holesale" retailer pays an! get pro!ucts.
Toys R us: P !irect I in Austria" &ana!a" Irance" German" RN" 'alaysia" Spain" Singapore
P franchise: Sau!i Araia" Rnite! Ara Emirates" 'i!east Nations
M.&.5enney: P !irect I : &ana!a" Mapan
P License: 5ortugal" Singapoure
P Anchora 'all in Tai#an
anchor store: main store that has the #i!est area of attraction A+mer+e) 8 *eymen 9" Galleria 8 5rintemps9
P 'ail or!er: *ra)il" Russia" Thailan!
Tale =.; &ommon mar+et entry mechanisms in international retailing:
Non 0 controlling interest: $ min ris+
: passive position
Iranchising: $ rapi! entry to the mar+et
$ using local managers" local o#ners. As a franchisee" he is more motivate!
ec. he is the o#ner.
: control prolem
Moint ventures: $ more control
$ fin!ing a suitale partner is more imp. 8 #in 0 #in situation 9
'ergers $ Ta+eovers: secon! preferre! type of entry
$ location prolem solve!" chance to chose location" company
$ cash flo# imme!iate 8 +eaOB 9
Internal e(pansion: >;Q of international entries et#een FE 0 C=
$ !irect investment " more control
: e(perimental opening possile
soft opening: trial opening 8 classis 9 " e(perimental opening
har! opening
Different Motives ( Chapter 4 ) : #hy people enter international mar+ets?
@oolan!erHE
political staility or instaility has impact on retailing !ecision.
centripetal 6 centrifugal forces.
8attracting to#ar!s the center9 8 a#ay from the center 9
pull push
ina!vertent internali)ation !ue to political !ev. in Europe. 8 unintentional 9
political fragmentation of east Europe
ing flags" !e coloni)ation
Resilient attitu!e : a!aptive to ing political con!itions.
noncommercial motives:
political reasons
retail estalishment to RSSR mar+ets
'c /onal!sfree system" !ist. system are thought
*o!y shop: tra!e not ai! poeicy
E(. E!ucation sectorschools of Iethullah Gulen 8 imp. political reasons 9
commercial reasons:
import $ e(port relations
!efensive reasons to enter mar+et 8 !efensive e(pansion 9 to inhiit an entrance of competitor.
legal con!itions force entry
economic !ev. level of country
country of !estination shoul! e similar to !omestic mar+ets.
Push Factor: specific to the country " !omestic mar+ets
Internali)ation !ecision: reactive internali)ation
- co specific: retail !ev. stage of instit.
- Specific to e(ternal environment: eco" political con!.
If the co is ig " large si)e mar+et saturation push rer to the outsi!e
artificial mar+et saturation 8 mar+et is not actually saturate! ut there are some
legal constraints 9
Italy "*elgium" RN restrictions to protect interests of small retailers
Pull factor: international retailing proactive
- !oesnt #ait saturation at home ut actively go out $ i!entify opportunities for faster gro#th" niche
opportunities 8 life 0 style retailers fin! gap in the mar+et that they can fill 9
- i!entify mar+ets that are similar to home mar+et so that they transfer their e(perience to these mar+ets.
Levi $$ 3Gloal Realities4 : E(ploit gloal realities
/istinct retailer formula 'c /onal!s
previously" push factors #ere important. Then the pull factors !etermine your choice.
2 or e(ten! of internali)ation !epen! on the 2 of ig
retail institutions
ta( regiue
other legal factors tra!itional pull factors 6 appr.
availaility of location
: i!entify some opportunities : : si)e of mar+et
: retail formula retailing concept : nee! $ #ants of cers
e(. Life style " *enetton 5roactive
8 fashion $ os $ e 9
*o!y shop : philosophical $ ethical values
'c /onal!s: !esire to share cer service to the stan!ar! of a !evelope! nation.
Iig >.< Interpretation of motives for internationalism:
Institutional factors
&er factors
Store location
.perations selecte! factors to consi!er #hen engaging in international Retailing.
'erchan!ising
5ricing
Image $ promotion
Liu + Mc Godrict Chapter 5
Sourcing: #ith gloali)ation it ecomes important
Tra!itional importing international sourcing
: 'ers are passive : proactive: actively search for the source" !ecision ma+ing
ase! on nee!s
- !riving $ limiting forces i!entifie!.
/riving Sources: 8 pull factors 9 ;. cost re!uction
: to fin! lo#er price -uality supplies
e(. Mapan" South Norea &hina" In!onesia laor cost

#ages less attractive

<. alternatives for lo#er price $ high -uality pro!ucts
=. increasing level of reliaility of their sources" supplement the !omestic ser 8 you #or+ oth #ith !omestic
an! international 9 some pro!ucts availale only aroa!.
>. single European mar+et encourages international sourcing ecause of the challenges $ opp. in the mar+et" E of
scale e coming more important.
some rers prefer the !omestic ser ecause of some strategic reasons " policiesCEQ of merchan!ise locally
tren! of internali)ation of retailing helps sourcing" e(pansion of retailing '" ta( costs
e(. *enetton : pro!uce! in Tur+ey
Inhiiting Iactors:
;. cost ' 0 cost
transportation cost
longer lea! time" transit time
#ant to +eep a uffer of inventory" the longer it +eeps" the more is the cost.
<. the co may not un!erstan! 8 soft ostacles 9 the international usiness proce!ures or the proc. of the
foreign country.
There may e !omestic mar+et nationalism.
Ira- political reasons #hy no out sourcing
Resistance to change: co culture $ e(p. may e such that" they have estalishes !omestically so !ifficult
to go internationally ecause of competition.
=. Iluctuations in ELA rates
>. Travel costs
G. Language $ &ulture prolems
international sourcing con!ucte! y the #holesaler 0 Rer manufacturers
%holesalers: ig !isa!v." a#ay from ser $ cer mar+et" #hereas rer close to oth. Rer get more info from
countries #here you !o sourcing.
Rers get enefit from oth ser $ cer si!e
%usiness #ith !omestic suppliers. /omestic suppliers mostly get their goo!s from aroa!" merchan!ise
importe! from other countries.
%form alliances ecause of the short coming.
'igros% $ R form alliances among themselves
'anufacturers mostly involve! in international sourcing.
.ther a!v. for rers:
- !istinctive assortment offering $ use the goo!s source! to uil! rer o#n ran!
E(clusive ran!s Italy
Another ran!s Iar east
Imp. is the Rers o#n image" the competitiveness.
.pp. for !ev. countries manufacturing Rers pro!uct
for Rers o#n ran!
'anufacturers: 5ull $ 5ush factors
: Suality
: Lo# 5.
: 'ore a!vance! technology
: Negotiaility: in !om. fe# sers
: Association #ith foreign susi!iary
: To intro!uce competition to !om. mar+et
: To estalish presence in the for. mar+et
A!v. of !omestic sourcing:
- lea! an! transit time shorter
- monitoring the process possile
- less management time
/ue to these a!vantages" Rers may pay up to ;GQ premium for !omestic sourcing.
I& $ 1& important y !eci!ing.
&ountry /ecision: : economic
: politic
: legal environment
: tra!e environment 8 L 0 control" ilateral 9
&ompany /ecision: : sales history
: mar+ up" reputation
: country of origin
: Sers e(perience in international mar+et
financial strength" Sers si)e" location
'ultiple Sourcing:
y going international" the retailer ecomes closer oth the cer an! sources.
OP: Out!ard Processin" rade:
RS e(ports synthetic $ reimport it as finishe! pro!ucts
uying organi)ation for the rer:
;. a rer can #or+ in affiliate! uying office
<. in!epen!ent office
Affiliate!: 8 manufacturing representatives 9 they carry goo!s of !iff. manufacturers $ they i!entify foreign ser
for the rer $ get -uotations $ shipment ma!e.
they represent the firm to the supplier.
International tra!ing firm
.verseas uying office uying organi)ations in general
Internal uying
Sogo suo sua Mapanese traine! co" passively reacting to the nee!s of rers.
integrate!: #orl! #i!e info system" they have cross functional teams $ full support at top management.
passive
proactive
Chapter #
Le"islative environ$ent + i$pact of it over r%er institutions:
Government can affect the po#er r:ship in the channel.
po#ercoercive
legitimate
e(pert
re#ar!
referent po#er
;. Relative concentration: has impact of a po#er of a retail inst. The more concentrate" the more po#er it
has in the channel.
<. S#itching cost: if it is high" the ser has the po#er. If s#itching re-uires more I" it #ill e !iff.
=. Significance of the pro!uct:
R higher concentration level
the more po#er relative to manuf.
profit ec. of negotiation po#er against manuf.
profiting at the e(pense of supplier.
%hat happens #hen there are legislations?:
some legislative acts restrict the potential for economic
scopelimit the si)e an! scape
re!uce the potential of economies of scale 8 limit the negotiation po#er 9
%hen there is no legislative constraints:
as the eco. !ev. " as !isposale income " 2 of retail outlets
after a certain point there is a reverse tren!" 2 remains constant or !ecrease $ shop si)e e(pan!s ec. you
enefit from economies of scale $ scope.
concentration starts.
Governments issue legal constraints to protect small rer $ to protect the resi!ents:
e(. In Irance in ;CH=" Loi Royer act: regulate uil!ing $ e(pansion of large scale retail outlets 8 hypermar+ets 9.
Get permission from a local commission:
Local gov. officials" repr. of local chamer of commerce" repr. of a cer group.
In ;CCF" Loi Rofferen restricts the opening of ne#s store! y rers.
&arrefour" &ontinent are influence! y the push factor of their country.
E(. *elgium 5a!loc+ Laco 8 ;CHG 9 restricting gro#th of stores protect small rer $ sers.
Germany 8 ;CHH 9 *aunut)ungs reor!nung as a response coming from the small in!ep. rers.
Iig. F.; Simple 'o!el .f Legislative Effect:
&omparison of mar+et #ith groceries" #e see that the 2 of mar+ets are#hereas the 2 of groceries" small stores.
Chapter &
Strategic alliance: : forms ase! on mutual nee!s
: form coalitions $ partnerships
Iormal retail alliance types:
;. E-uity participating alliance
<. Alliance #ith central secretaries
In the first one" there is cross share hol!ing et#een memers" in the secon! 7ust they form on alliance to
coor!inate retail activities. 8 uying $ ran!ing 9
Iirstseen only in alliance ERA 8 European Retail Alliance 9 memers share each others share.
A!v. of retail alliance:
lo#est price ecomes the *enchmar+ price" compare the price against that priceshare info as they get price
from ser.
&entral 5urchasing: alliance in !omestic stores 8 'ARNETT' they uy centrally" to fight against ig rers"
uy in large -uantities $ get !iscounts #hich is share! y memers 9
or!ers are also !eci!e! y the central alliance
meetings: pricing $ merch. range !iscusse!" ser r:ships" transportation metho!s all retail operational
functions are !iscusse!.
To share e(periences" for the learning process meetings are ma!e.
organi)ational learning is institutionali)e!.
E(periences $ competences share! $ transferre!
Iig. H.< A hierarchy of alliance types:
loose affns: sharing of info imp.
retail consortium in RN
form tas+ forces for such issues on security
Nl uying clus: common purchasing" !one centrally" enefit from eco. of scale.
&o 0 mar+eting agreements: Shop 0 in 0 Shop" Licensing Agreements"
Iranchising later if it is successful it #ill en! up in 7oint venture.
E-uity alliance
Alliance #ith central sectret.
Moint ventures
5artial ac-usition
&ontrolling interest or full merger #ith retaine! i!entity of susi!iary.
%hy alliance? to re!uce ris+
Inherent perceive!
&ompetitive !isa!vantage: to overcome this you form alliances.
*ran! 0 image transfer is important
Tra!ing format transfer 8 'c /onal!s 9
Iacilitate your entry to the mar+et
P Tale H.< Ney enefits $ alliance types:
5rocurement in specific pro!uct areas

purchasing
P Tale H.;
P Iig. H.> Scape $ &ommitment of retail alliance forms.
C'P (
European retailing: forecast Tur+ish y loo+ing at this
Retailing imp. =EQ of us ase! on retailing
.f the #or+ing population ;>Q employee in retail sector" #hich creates ;=Q a!!e! value for the economy.
R format in European us: !ep. store
variety stores loose mar+et store
foo! retailing gro#th" lea!er in Europe
non 0 foo! large specialist !ev Toysrus" 'r. *ricolage
Emergence of !iscount stores: intro!uctory stage in south Europe 8 Italy 9" in Germany"
Netherlan!s
reache! the maturity stage
Acceleration in the retail life cycle: 2 of years it ta+es for a R format to reach maturity:
!ep. stores: ;EE years
variety: >E years
hypermar+ets: <E years !iff. countries in !iff. !ev. stages in Italy intro!" in Spain gro#th" in #orth
non:foo! sp: ;G years 8 Irance" Germany" *elgium 9 maturity
A !eca!e ehin! Europe Tur+ey
/iversity of !eman!: &er more !eman!ing" moile #hich lea!s to !iversity of / fragmente! retail
format 8 appealing to spectacular segments 9
&ompetition: : #ithin types 8 inter 9 shift from inter to intra
: t# types 8 intra 9
: vertical competition: compet. #ithin in the channel of !istriution.
'anuf % R &er
&ompet. et#een manuf. an! retailer retailer more strong. *alance shifts to #or!s
The Rer.
&oncentration: ecoming more concentrate!.
Top G foo! ring groups in RN >GQ the R mar+et
In Netherlan!s >>Q
Italy <EQ
Spain ;<Q
2 of people ;CGG 0 ;CC;
H< emp 6 shop ;EG emp 6 shop
/iversification: ;CDE ma7or gro#th tactic of Rers.
CEs shift to#ar!s concentration
A!v: : sprea! ris+ eliminate!
: +no# 0 ho#" e(perience can e(ploit in other sectors" #ith other format.
Internali)ation: saturation level e(pan!ing mar+et share ecomes more e(pensive.
Legislation" info. system similar tastes of cers" esp. aove transcultural goo!s
Legislation: Italy 0 strict Spain 0 more supple 8 loose 9
.rgan. $ 'anagement: fun!amentally seems to e not chancing much metho!s $ tools change!
8 electronics" inventory control" arco!es" scanning 9
&apitali)ation: family ase! $ finance! through !iff. sources 8 private fun!s" stoc+s" an+s etc. 9
> !ifferent stages of !evelopment in Europe ring
south Europe interme!iary : consent higher a!vance!
concentration #ea+ : pro!uctive 6 emp. @igher
segment !oes not e(ist : compet: inter $ intra more intense
usage of ne# tech lo# /enmar+" Lu(emurg" Netherlan!s" Irance
small scale family us ne# tech. " ne# formats.
8 R sector in most of Anatolian
cities 9
turnover lo#
Average of ;< E& countries >EF EEE E&R !roppe! to ;;> EEE E&R in 5ortugal
A!vance!: Germany" RN Ring us 6 ;EEE inhaitants
In Germany F= R institutions 6 ;EEE inhaitants
In RN GF
they are igger $ concentrate! " therefore this rate is lo#.
2 of people emp 6 us E& average >";
Germany F"G igger institutions
RN C"G
Turnover 8 gross rev. 9 U DEE EEE Ecu D times the turnover of tra!itional countries.
Largest companies Germany
@ighest profit margin RN 8 FQ net goo! groups 9
8 Irance ;"GQ 9
Tur+ey GQ tra!itional
Segmentation: : superstores
: !iscount supermar+ets
: -ualitative supermar+ets
: high !iscount s. ma(. amount of !iscount" ut there is no service.
: convenience mar+et
Rsage of mar+eting techni-ues strategy of !ifferentiation. /ev of Rers o#n ran!.
In RN >;Q of goo! sales come from o#n ran!s.
&oncentration @igh G co. >GQ of mar+et in RN
>;Q of mar+et in Germany.
'ar+et pro(imity: : closeness to ser
: closeness to cer
: closeness to competitors
: closeness to the other outlets of the same chain
: closeness to parent co.
&ivil ris+: relate! to the cus internal security
Iactor costs: lan!" capital" factor of pro!uction
Logistics: outsourcing y the airplane: imp. cost" ris+y using only one type of transportation is a ris+
element.
&ompetition: in!irect competition: !epen!s on the positioning. If you position yourself as a convenience
store" all these stores are the competitors" others are in!irect competitors.
!irect competition
Saturation: relate! to pop si)e: 2 of cers per store. If the 2 of cer $ 2 of stores saturation
factors factors
gro#th segmentation
nation internali)ation concentration: to reach critical si)e
2 shops sales area
stoc+ service provi!e!
2 in!epen!ent retailers affiliation
turnover gro#th margin
saturation in the !omestic mar+et lea!ing to international
unsatisfie! nee!s in international mar+ets
C')P*+ ,
Cornerstone: mar+et use! as a foun!ation to enter a region.
E(. *ra)il South America

chance to learn aout a!7acent mar+ets
tactical investment.
Parado-: international mar+et is more ris+y then the national mar+et. the con!itions leave us to enter
international mar+et #ith less info.
assess competition: : 2 of competitors
: positioning of the competitors
in or!er to i!entify the gap $ niche positioning is important
Gap is not enough to go into the mar+et" there shoul! e nee! in the mar+et.
Mar.s / 0pencer: franchising least ris+ 6 to remote countries
HEs &ana!a ac-uisition GEQ no !irect investment" ecause they #ant to learn
the mar+et.
5ull Iactors: $ English
$ similarities in culture
$ economic prosperity $ staility
$ springoar! to RSA 8 tactical ; 9
;CDD to RSA #ith ac-uisition 8 full 9
;CHG Irench: !irect investment : they +no# the mar+et" not too much ris+.
;F stores in Irance 7umpe! to a!7acent mar+ets. *elgium" @ollan!.
Spain partnership ec. these are !istinctive from the mar+ets that they are use! to in usiness.
Gree+
Iranchising:
learn aout the us in that country learning e(p. for the franchiser.
estalishing your name
1$a"e tra2ector3:
.l! inst. it +no# it in !omestic
International estalishe! right a#ay. 5rice" -uality imp.
repeat purchases" trial !epen!aility" honesty ta+e time to estalish.
E(. *osch" 'igros
< !imension : : -uantity intensity of the image" ho# #ell it is estalishe!.
: -uality of image
-uantity time
Anec!otal evi!ence to ma+e image research
5rice comparison et#een cus.

asolute level : RN lo#er ut cers elieve that prices to e the same in !iff. countries.
E(pectations put !o#n the !iff. in international research
Internal reference stan!ar!s: vary from cu to cu" international comparison ecomes more !iff.
A!7acent ' V S Irance foo!
Spain *ras
a4le ,56:
%hat portion of money to #hat spen!ing pattern
@o# much you spen! $ save saving ratio
E(patriates $ tourists imp. ec. they may e more positively oriente!. 8 'c /onal!s 9
7 & *L*8*9 7
;C<H Southlan! ice co: D plants" <; stores
;C=< S. Thompson
;C>H H> convenience stores
creative a!v. agencyname of outlet
;CGE en! #ithin RSA Ilori!a" %ashington" &alifornia
;CHE e(tensive coverage: entering overseas
: &ana!a" 'e(ico" RN
rather than !irect franchising" it uses area franchising
Area Iranchising: Su franchising #ithin their regions. Get some royalty payment 8 Iranchisee 9
;CH= Mapan: Ior #ante! to help Mapan to !evelop the retail usiness.
image concept
moves #ithin time
-uality
/istance consi!ere! as a positive factor
IT. K.NA/. &.. lt! #as the family of the usiness area license.
;CHF Area license to Australia
;CDE Tai#an" @ong Nong" &hine
RS looser than other cus. .nly re-uirement #ithin franchising is merchan!ise: consistent #ith -uality $
-uantity $ value
No re-uirement #ithin the supplies" price there is no uniformity" there #ill e lurre! image 8 no
stan!ar!i)ation 9
Mapanese mar+et: : top = retailers have GEQ of the mar+et
: GE EEE convenience stores 8 c 0 stores 9. There is capacity for GE EEE more.
: susi!iary of Ito Ko+a!a &o. 8 goo! reputation 9
: profits high $ sales high very efficient !ue to that they are cer focuse! an! they
use technology.
: CGQ in!epen!ent franchising 8 very strict 9" they fin! store o#ners an! they convert
those stores to c 0 stores #ith long 0 term" strict contracts.
In return for loyalty : in or!er to reali)e consistency $ stan!ar!. They give man
support to these o#ners. 5os. system 8 point of sales 9" shares utility costs #ith
them" IT. guarantees min. gross profit annually.
: to pro!uctivity $ net profit : #or+ together the fee $ parent co.
: fee commission: calc. on the asis of each stores gross margin 8 not stan!ar! 9
Iactors of facilitate this efficiency:
store e(pansion policy: uni-ue they use str. of mar+et !ominance" #hich impries that the stores
form a clusters of GE 0 FE stores.
lea!s to: local saturation
concentration mar+et presence 8 high visiility 9
as a result of this: +eep compet. a#ay
!istriution efficiency
ran! a#areness
a!v. efficiency
eff. in support of franchisee
;CC= G>E; stores in Mapan !ivi!e! into >H prefectures" these stores are !ivi!e! to only <; of
them.
information system:
5oS cash registers spee! very fast" recor! imp. /ata 8 time purchaser 9

info sent to the comp. to host a co. an! sent to store computers stores use info #hile giving or!ers
8 -uantity $ assortment 9 : i!entify the small moving items" replace #ith large:
space efficiency " !o not have opp. losses.
cer loyalty enhance!
Graphic .r!er Terminal 8 G.T 9 : portale computers" sales info provi!e!" sales people using #hen
they get or!ers IS/N 8 Integr. Services /igital Net#or+ 9
Allo#s us item y item control : efficiency
profit
inventory
through this research they i!entify the pea+ hours:
H.EE 0 C.EE 6 ;=.EE 0 ;G.EE 6 ;H.EE 0 <=.EE : !elivery ta+es place relate! to the pea+ hours.
5er year GE 0 FGQ of pro!uct line is replace!.
Soft /ring Lines : > EEE availale" H eleven sells HE 0 DE of them they choose the most !eman!e!.
Iterative /ec. 'a+: certain steps to reali)e the !ecision.
8 use! at all levels 9 situation analyses
hypothesis
or!er
verify: chec+ if actually sells.
inventory lo# successful ecause they focus on the target
offer lo# choice" lo# range mar+et sell #hat the cer #ants.
'anufacturers: info is share! also #ith them.
cooperation
total cost of the info system
special agreements #ith some pro!ucts. They act as partners: #hat the rer #ill sell is
#hat the final cer #ants.
!ifferentiate from the competitors
Lael: hour of pro!uction
Guarantee to some manufacturers: no return policy
a!!itional services: ;CDH pay your electricity through the stores computer 8 no charge 9
cer satisfaction " ne# cer attracte!.
- photocopy" fast photo" ven!ing machine for tel car!s.
- 5ro!uct personali)ation: ma!e to or!er lunch o(es in!icates ho# the co is committe! to S an! cer
nee!
- Iresh flo#er
- Shop America 8 catalog service 9 : not e(pan! so much" ecause !om. suppliers complaine! aout.
/istriution system change!:
: conventional system: many vehicles are use!" lin+s in the channel are large $ each vehicle carries the
pro!uct
of one supplier.
- comine! !elivery system: pro!ucts consoli!ate! efore !elivery to the store" it is easy to consol
ecause they are clusters.
Temperature controlle! !el. system pro!ucts sep. acc. to their temperature
;CH> HE !elivery 6 !ay 6 store !roppe! to ;CC< ;; !el 6 !ay
;. franchisee agreements
<. e(tensive usage of technology $ electronic !ata
=. restructure !istriution system
for these reasons it #as successful than the mother co.
Southlan! &orp: : fast foo!
: petroleum
;CD= : &itgo 5etrol &o. vertical integration
: real estate
: auto repair
;CDH : &ana!ian uys the company: high level of !et
1oots: : going a#ay from the core usiness
8 #hy !ecline 9 : high competition
: econ. stagnation
international operation " RS
&ers change image" perceive these stores as insulting
price: : for some pro!uct they get !iscounts
: for some pro!ucts they pay premium cer get confuse!
!irty" inconvenient" pro!uct range poor store assortment $ cer !eman! !o not overlop.
Syn!icate of Map. usinessman
;CCE IT. K.NA/. ta+es over
G;Q o#ne! y IT.
>CQ H eleven Mapan
+no#le!ge $ e(perience transferre!
;CC< annual Rep.: in or!er to retain sustainale compet. a!v. " i!entify the target 8 conven. oriente! cers 9
spee!
-uality
price : fair
store environment: clean" frien!ly" safe
selection offer #hat they #ant
Revitali)ation:
;. merchan!ising: enough choice ut they are selective
<. pricing
=. !elay ring
>. store 0 ase
G. us. concentration
F. outsourcing
H. !et restructure
;. #hat !one in Mapan" mostly transferre! to RS the items that not sell are remove! an! the space
allocate! to ne#s. Items $ est selling pro!uct rapi! response to W in /.
Accelerate! inventory man. systems: y e(tensive use of electronic !ata
<. price str. shoul! match #ith cer perception of price level. Insult pricing too high for
merchan!ise offere!.
To have a clear image of 5 level" they use fair price every!ay system to control prices.
IT. K.NA/. says c 0 stores has to come to on convenience. 5remium pricing if only mar+et
con!itions re-uire
@igh price: ec. of the life stage of the pro!uct
Not ecause of cos internal prolems
&hec+ #hat cer #ant $ mar+et re-uires.
=. !elay ring of man. levels fire! some man.
faster" -uic+er !ec. 0 ma+ing
closer to the cer" to the root
cost
>. a9 close of some stores: shrin+ age on the store ase
9 remo!eling of stores: e(ternal faOa!e = colors: lightningoth insi!e an! outsi!e" aisles #i!ene!"
shell height" posters on #in!o# remove!. Rsage of more open cases.
G. in H 0 eleven RS vertical integration : petroleum !iversification
!istriution usiness" foo! processing" petroleum they get ri! of
they concentrate on convenience usiness
F. !istriution since they go out of us. " they go outsource
re!ucing the !irect costs
ale to get etter service ecause you are #or+ing #ith e(perts in that area.
!isa!vantages: loose control" #hen you outsource
H. !et arrangement: ac+e! y IT. K.NA/. " therefore they have a etter !et structure.
In April =E" ;CCC Southlan! We! its co name to H 0 eleven in c.
&ultural specificity: some strac. $ success specific to culture.
Successful ecause:
;. Mapanese emphasi)e!: incremental
continues improvement
long 0 term
<. communication #ith cer: cer !e!icate! cer focus #hereas RS !e!icates on corporate: nee!s not +no#n
Tale F: A: /imensions to retail internationali)ation
Iinancial ;: first no financial ;" there is only the transfer of name
massive" multi 0 layere! I in ;CC;
*: international sourcing:
*uyer !ecisions: retailer ran! very imp. in the success of Mapanese co.
&: international retail operations:
Reason !istance: no push factor in RS mar+et
to push H 0 eleven to Mapan ris+
IT. K.NA/. successful in Mapan" e(pan!ing there" no push factor
;. !efensive: protect their name
<. to e(pan!: fin! a pull factor" imp. opport. in the RS mar+et
=. repay the Americans for the franch. r:ship
>. ailing the American franch.
&ountry of origin impact: RS tra!ition in franchising is han!s:off us format
Mapan: !eep involvement is the tra!ition ecause its a r:ship oriente! society.
#ithin the co.
5os!ata Applic.: if a pro!uct is sol! !uring pea+ time or normal perio!" it is sho#n y !iff. color.
- sales info
- #eather
- temper
- events sol!:out merch. !ata
- !eliv. !ates
- items
- gloal store e(pansion
- concentration rate of the stores
conceptual mo!el of str. consi!erations
internali)ation pf Ring
6
st
: if the Rer is not ale to fulfill certain criteria" they #ill e unsuccessful an! they coul!nt ma+e
international retailing.
international retailing: I shoul! !ifferentiate its pro!ucts
if there is !iff. a!v. it is ale to act so li+e a monopoly in the mar+et an! enefit from its con!itions.
if !iff. a!v. :sell more
: they perceive as if #e have sth. !iff.
: price #ar is imp. escape from it.
in or!er to !iff. the pro!ucts" there is a mo!el 5LTN 8 pro!" lifestyle" image" niche 9
consi!er these > compon $ ma+e sure that all of them e(ist simultaneously an these are inter!epen!ent
5ro!uct:
Those Rer #ho #ant to go international " they emp. pro!. e(tensively. In all these > compon" the rer shoul! e
ale to !iff. itself in the !om. mar+et first only then you !iff. yourself international.
you shoul! have an uni-ue pro!uct offere! to international mar+et also /eman! Iorm of Geneity 8 gloal
appr. 9 everyone #ants the same.
Life style:
to create a match et. the store env. an! life style of the target cer
!omestic international mar+et
store env. : all the rl mi( elements are consi!ere!.
5ro!. : merchan!ising $ assortment !ecisions
/ist. : location
: pricing
:communication
Rer #ill e successful in !iff. it is formal if he is ale to !o it.
Lifestyle !etermine! y personal value systems:
ho# people live?
ho# people spen! their time an! money?
if much of the time allocate! to traveling" sleepinglittle time for purchasing" in or!er to overcome this
convenience is imp. one stop shopping
in a!!ition for time for traveling" time has more value than money #e #ill not e facile aout prices home
!elivery can e a solution.
Niche:
small gap i!entifying unsatisfie! nee! or #ant an! try to satisfy it.. not all the gaps are the opp.
speciali)e! in that area $ present a R mi( approp. #ith the cers profile in the gap #e target to satisfy.
&:stores nee!e! in Tur+ey.
choice of format" price imp.the R mi( shoul! match the target mar+et.
Image:
5erception" mental picture in cers min!. if at home #e have uni-ue co. name" ran!" private lael" if #e are a
lea!er co. at home" #e assume that #e have favorale image for international r.
e(. H:eleven favorale image in RSarea franch in Mapan. overlop et. ho# rer position themselves $
ho# cer position them in their min!s.
- reposition yourself in the mar+et if there is no overlop
- communicate #ith the cer
a!vertising" 5R
e(clusive store not perceive! y the cer as e(clusive
location may e #rong
uil!ing may e #rong no comm. of image
ran! name #ritten out fashione!
sales people use!
5lin: use! to guess the success proaility of a rer.
(
nd
internali)ation of rer:
#riters revie# the entry strategies:
- invest: !irect entry
- gloal strategy
- multinational str. 8 hypermar+et 9
;. !irect inv: greater ris+ ut more control an! e(perience" you spee! up your learning
cycle.
<. gloal strategy: homogeneity in the mar+et" everyone #ants the same.
specialty store
segmentation strategy is gloal" !o not segment y cus.
R mi( strategy is uniform all over" gloal" you 7ust replicate the same str. in all aroun! the #orl!.
vertical integration: emphasi)e! more than the multinational ec.:
: to guarantee uniformity
: through vert. int. theyre ale to enefit from E of s.
sometimes they also outsource.
logistic functions are centrali)e!" !ec. ma+ing is
centrali)e! #ith gloal str.
info system is imp: only may to have center !ec. ma+ing
e(pansion is faster in gloal ec. there is no a!aptation" usage of formula that is alrea!y teste!.
Short comings: : miss the possile nuances" sha!es of !eman! in the local mar+et
: if you are strongly speciali)e!" there is !anger of Wing hait an! entry of
competitors.
=. 'ultinational Strategy: a!apting is the +ey #or! for this strategy.
Irance hypermar+ets a!apte! a multinational str $ first a!apt to: or!ering cus" then to the gro#th
potential cus. 8 Spain 9
Si)e of profits margins are very lo# ut there are high sales.
pro!uct" pricing !ec. W from cu to cu. /ec. ma+ing is !ecentrali)e! pricing !ec. very critical" a!apt to
WS in the mar+et -uic+ly.
responsile po#er !elegate! to local store managers.
: training very imp.
: in the man. group #e use e(patriates in or!er to sustain corporate image.
Europeans invest G"G ill. X in RS mar+et
RS invest <"G ill. X in European mar+et
RS mar+et is more profitale: : purchasing po#er" !isposale I high
: site $ lan! costs lo#er" utili)es lo#er
: looser legal constraints in us
European #ante! to e(port hypermar+ets in the states ut it #as not successful.
shortcoming: : !o not enefit from E of S" enefit from accumulate! +no#le!ge" #hich is reciprocal
8 oth #ays 9
!esign a!ver. in each of the cus in enefit from E of S of communication
: speciali)e store: no nee! from enefiting from E of scale
image #ill e imp." multinational str. #ill harm you.
location" %@K?
J retailing in &)ech $ Slova+ Repulics J
from ;C>D >E year communist regime
- private sector is li-ui!ate!: retail outlets state or cooperatives
- all retail activity manage! centrally : to get ri! of useless competition
in lieral economyto enhance competition rather than avoi!ing.
&entrally: ho# much? %hat? 5rice level? 5rofit margin? 8 very small 9" Amount of space? 8 very small 9
: names very imp" it has value in itself
stores name! after pro!uct they care
most of them name 3foo!4" state o#ne! foo! tra!e enterprise resp. for foo! !istriution
;CFD &hec+s $ Slova+s nationalistic movement
enterprise !ivi!e! into t#o: : &)ech
: Slova+
intro!uce 5erestroi+a: getting a#ay from centrali)ation.
;CDD;< regional enterprises
;CCE!istrict enterprises 3getting more local4
#ith such movements #e oserve: lierali)ation
5rice lierali)ation: 5 of foo!y =<Q /5
mar+et mechanism start #or+ing E"HQ monthly increase.
all price susi!ies eliminate!.
5rivati)ations: ;CC< some ;D EEE outlets privatisi)e!. in a!!ition thousan!s of ne# outlets estalishe!.
Reflects: automi)ation of retail !ist.
;CC= &)ech repulic: ;CGEE retail outlets
;CCE >GE
ser face large amounts of #holesalers
;CC< atomistic pragmente! mar+et
physical structure of !ist. !oesnt change.
: si)e of outlet small" ec. there is finance prolem.
foreign investors are imp. if there is no money. %ith foreign investors" #e see entry
of #estern style of retailing.
;CCE cer satisfy. ;EQ
;CC< cer satisfy. FHQ
;. -uality of merch
<. -uality of service importance accor!ing to cers
=. range variety
>. price
;CC> see W from automistic fragmente! mar+et
tren! to#ar! concentration: 2 of co. re!uce!" most of them form voluntary chains" go into franchising
agreements" from uying groups.
&oncentration ecause:
;. in or!er to !iffer themselves among the in!epen!ent retailers
<. have to compete against foreign retailers
enefit from econ. of scale
argaining po#er
share cost
enefit from central purchasing
Slova+ia: former state o#ne! enterprises $ coop. are present although there is lierali)ation
ne# retail formats intro!uce!
Ne# retail f. : ;. !iscount stores
<. cash $ carry operations
=. petrol stations
>. home !elivery of foo! 8 -uality of serv. 9
G. speciali)e!" large 0 scale" non 0 foo! outlets.
;CC= iggest &)ech retailer 8 N 'at 9 share it
retail mar+et is only ;Q
Top G retail co. in &)ech =Q of the mar+et accounte! #est GEQ
'ain foreign investors : N:mant: ;= !epartment stores 8 privati)e! state o#ne! !ep. stores 9
/utches 8 Ahol! 9 enter &)ech mar+et #ith a susi!iary in ;CC;
;CCG estalish o#n supermar+ets 8 =G 9
name 'ana
sesa#!iscount store
German norma
Scan!inavian Rema ;EEE !iscount stores: <> of them in &)ech.
German /elta
German Tengelman 8 ;G stores 9
name Ypeus3
German $ Austria origin YSpar3: coul!nt e(pan! fastly ec. they are !epen!ent on foreign sers
*elgium /elvita 8 supermar+et 9
Austria Natreiner
'oile outlets 8 ;EE vans 9
family prost 6 ice:cream
Moint venture: German 0 &)ech /rin+
/utch 0 &)ech *onmar+
/utch 0 Slova+
searching for a goo! partner foreign investors
searching for location
unsuccessful
Spanish Grocerry group 8 SK5 super merch. !o 9 : enter the &)ech repulic #ith very large hypermar+ets.
failure: ;. lac+ pf e(p. in large scale outlets
<. prolem #ith suppliers r:ship perceive! arrogance
merch. !ecision : ' for goo!s ut &)ech prefer !omestic
=. location not appropriate
*ata 8 non:foo! shoe center pro! $ !itri. 9
origin is &)ech
more than =E outlets
Speciali)e! furniture $ !o it yourself sector: GZt)en
*auhaus
INEA 8 simple Scan!inavian furn. 9
for the rer to e successful in &)ech" you cannot assume a gloal mar+et comine e(periences of home cu
#ith !eman!s of cer in &)ech.
Retailing in future: : similar to tur+ey
: in!epen!ent rers 8 small si)e stores #ith #i!e assortment 9 #ill not survive
have to strictly speciali)e!" fin! niche mar+ets
have to cooperate
they #ill not survive ec. no competitive a!v.: price" -uality" variety 8 no competition9
e(pan!ing in future: petrol station 8 ;GEE stores 9
Rers #ant to form most profitale formats. There are !iff. formats" from #hich at least online shops are
estalishe!.
;CHEs shopping malls ecoming popular #ith nee! of one stop: shopping
;CDEs superstores
for the last several years online shopping retailers.
Internet #ays to spee! up transactions" everything starting to W. &<ers nee! are more !iverse" so rers are
e(pecte! to satisfy these nee!s. &ers !o not have much !isposal time save time" money" energy for cers.
To!ay rer face some imp. frontiers:
cer e(pectations: variety" information" convenience" perceive! value
rers have to hire $ retain est @R
technology: in or!er to e successful as rer you have to use techn. in or!er to survive. use of latest techn. is
not enough. comining techn. #ith the @R is essential.
gloali)ation: #hen you gloali)e is important
+eep c[ers loyal to organi)ation" you have to !emonstrate" long 0 term r:ships #ith cers
r:ship retailing: you have to e ale to trac+ all the !etails aout cers. cers service gain more importance.
&ompetition is li+e #ar of movement" achieve a strategic is imp.you have to ma+e tra!e:offs aout pro!.
!ecisions.
%hether to integrate internet #ith your tra!itional usiness?
Not easy to -uit from investments" therefore they integrate into Internet.
Since tra!itional stores have a!v. of +no#ing their cers" they try to comine these info #ith techn. on internet
mergers.
&er po#er is imp.cer are getting more po#er than rers. &<ers #ith internet have comparale !ata info in
their !ataases. freg. car!s!iff. retailers" !iff. offers.
alance et#een po#er r:ship moves to#ar! cers.
empo#ere! cers are important for retailers
argaining po#er of cers #hen they ecome empo#ere!.
!iff. co s /ell computer: half of its total sales comes from online sales.
cers !o not care in #hich us. format in if you have convenient #ay to satisfy them in on time. Supermar+ets
in *ritain sell more gas than shell. since cers easily learn the structure" pro!ucts ecome commo!ity.
In stea! of in!. pricing" price the #hole pac+age at once.
A!v. income is very imp.
Ring rea+s all the geographical arriers you have to the same price.
/istriution economies #ere essential ut search economies are ecoming more imp. in the !ev. of cyer stores.
Supply chain !elivery chain: cers #ant any +in! of convenience" !el. chain more imp.
#or! 0 of 0 mouth: not spen! so much in a!v.
#ith the invent of Internet it W! to #or! 0 of 0 mouse : to inform cers on #e sites or
e:mails.
shopping car!: ;C=F invente! ar co!es invente! 8 ups scanner 9 Rer otain valuale !ata on cers.
;CDC: vi!eo car!
cash registers #ithout cashiers 8 in some 'igros 9
ur!en on cers unless 5 #ill e more attractive.
In Tur+ey: lac+ mar+ets" transitional perio! #here state enterprises #ere !ominant
saturation of rers $ #holesalers move to merging
7 OMM: '1LF1G*+ 7
Tommy @ilfiger 5resentation
push $ pull factors for internali)ation
Tur+ey: 5ush
mature !om. mar+et of T@
T@ is po#erful enough to con!uct in usiness in Tur+ey
%hy Lon!on? physic !istance culture similar to RS
cornerstone to Europe
5ull
lo# tra!e arr.
!isposale income
high pop gro#th
potential of shopping high
lac+ foreign ran!s
un!er!evelope! retail structure
ten!ency to#ar! American 0 lifestyle
no restricting regulation against for capital flo#.
Economic con!itions imp in segmentation: high income people
In Tur+ey inc. !istriution is prolematic T@ can enefit from this
Si)e of specific segment important: Tur+ey In!ia

specific segment larger
Entry strategies: : timing 8 not goo! 9
: alance! international program
: gro#ing mi!!le class 8 aim A $ an! A cers not imp. in Tur+ey 9
: matching concept to mar+et
: solo or partnering? Test Tur+ey" special pro7ect Iranchise
Sourcing: T@ !esigns" sources $ mar+ets its collections un!er T@ tra!emar+ through it susi!iaries. Str.
licensing agreements to e(pan! its pro!. line. prefers outsourcing in ne# pro!uct lines.
Image: cu. of origin rather than *eymen 8 !\nya mar+asB olara+ giriypr T\r+iye ye 9
;. manufacturer representative
<. franchisee
5rice: marginler T\r+iye !e aynB mB?
/\nya OapBn!a?
= \l+e!e+i fiyatB compare et]